Synopsis:

Table of Contents

Introduction Part 1: Basics of Financial Statements What Are Financial Statements and Who Uses Them? The Balance Sheet Glossary of Balance Sheet Terms Sample Balance Sheets Why Net Worth Is Not Always the Same as Market Value The Income Statement Sample Income Statement Glossary of Income Statement Terms Why Income Does Not Always Equal Cash The Cash Flow Statement Sample Cash Flow Statement Glossary of Cash Flow Terms Summary of Part 1 Part 2: Understanding Ratios and Percentages Using Ratios Without Fear How Ratios Are Developed Five Basic Rules for Ratios Summary of Part 2 Part 3: Four Types of Ratios Introduction to Ratios Glossary for Ratio Analysis Ratio 1: Liquidity Ratios Current Ratio Turnover of Cash Ratio Debt to Equity Ratio Summary of Liquidity Ratios Ratio 2: Profitability Ratios Rate of Return on Sales Ratio Rate of Return on Assets Ratio (ROA) Rate of Return on Investment Ratio (ROI) Summary of Profitability Ratios Ratio 3: Efficiency Ratios Average Collection Period Ratio Inventory Turnover Ratio Fixed Asset Turnover Ratio Summary of Efficiency Ratios Ratio 4: Market Ratios Earnings Per Share Price/Earning Ratio (P/E) Dividend Yield Part 4: How to Perform a Ratio Analysis Introduction What Is Significant? Ratio Review Chart Afterword Summary of Part 4 Part 5: How to Perform an Expense Analysis Is Anything Good About Expenses? Examining Your Expenses Increase the Return on Expenses Summary of Part 5 Part 6: How to Control Your Business How to Proceed Trend Analysis Cash Position Charting Development of a Target Statement Accounts Receivable Aging Schedule Summary of Part 6 Appendix

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